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Overview

Commonly, a person works till a certain age beyond which he is not able to continue earning. He thus enters the Retirement phase of life wherein he needs a steady periodic inflow to sustain himself and also to maintain his expected standard of living without having the need for depending on others ( Govt, Children, Friends etc ).

Keeping this background in mind, Govt of India formed the Pension Fund Regulatory & Development Authority (PFRDA) for developing & regulating Pension System in India. PFRDA launched National Pension System ( NPS)

NPS is a Defined Contribution based Pension Scheme launched by Govt. of India.

CONTRIBUTION + INVESTMENT GROWTH - CHARGES  = ACCUMULATED PENSION WEALTH

 

Who can Invest ?

A citizen of India including NRI between the age group of 18 years & 60 years can join

How it Works

  • To enrol, client submits Registration form to Service Provider (PoP).
    (Indusind bank is a registered PoP )
    - Attach self-attested KYC docs
    - Append initial contribution amount
  • PoP processes the application by sending to CRA.  CRA ( in this case NSDL ) is central agency appointed by PFRDA for handling records and other services related to NPS
  • Upon Registration, NPS account is opened and a Welcome Kit is sent to subscriber, carrying a unique Permanent Retirement Account Number (PRAN)
  • CRA also sends periodic SMS/Email alerts on Credit/Debit of units; Fund value; status of service-requests received; status of grievance received etc CRA also sends periodic Consolidated Transaction Statement
  • Subscriber starts contributing to his NPS account till the time he is working.
  • On retirement the total corpus is made available to subscriber
  • Subscriber selects an Annuity Plan as per his requirement and invests the amount to avail pension for post-retirement years

Features

Benefits

  • Low Cost Investing and Compounding
  • Transparency, Portability & Flexibility
  • Tax-Efficient
    An individual can claim deduction u/s 80 CCD(1B) for contribution to NPS ( Upto a maximum of Rs. 50,000 ). This is over & above Rs. 1.5 lac deduction already available u/s 80 C where NPS also qualifies

Types of Accounts
2 types of accounts are available

Tier 1 Account ( mandatory)

  • Withdrawal is not allowed ( before age 60)
  • Tax benefits pertain to this account

Tier 2 Account ( voluntary)

  • Subscriber is free to withdraw anytime
  • Tax benefits are not there in Tier-2 account

Minimum Contribution Requirements

Tier I Account Tier II Account
Minimum Contribution at the time of account opening & for all subsequent transactions
Rs. 500
Minimum Contribution at the time of account opening Rs. 1000
For all subsequent transactions
Rs. 250

 

Minimum Contribution p.a. Rs. 1000 Minimum Account balance at end of financial year Rs. 2000

Investment Approaches
Active Choice
Subscriber can actively decide as to how your money is to be invested across Equity (E), Corporate Bonds ( C ) & Govt . Securities (G).  Equity capped at 50%

Auto Choice
Investment is made from a life-cycle approach. Allocation is progressively decreased in Equity & increased in Bonds & Govt Securities

Fees & Disclaimer

Role of Indusind Bank

IndusInd Bank has been registered with PFRDA as PoP and its branches have also been registered as PoP-SP

In the capacity as PoP, IBL shall be responsible for following broad functions :

  • Registration
  • Initial Contribution
  • Subsequent Contribution
  • Service Request

Application Forms for Registration/Contribution/Service Requests can be obtained from IndusInd Bank branch or can be downloaded from :  https://npscra.nsdl.co.in

Fee Structure


Intermediary
Charge Head Charge Frequency of deduction Mode of deduction
POP (Service Provider) Customer Registration Rs.125 One time Deducted up from rom the contribution amount
Contribution Processing* 0.25% On each transaction
Non – Financial Transaction Processing Rs.20

CRA (NSDL)

NPS Account Opening Rs.50 One time From NPS Account (by cancelling the units) on the last day of the calendar quarter
NPS Account  Maintenance Rs.190 Per annum
Transaction Processing Rs.4 On each transaction
Fund Manager Investment Management 0.01% Per annum Recovered through NAV deductions
Custodian Asset Servicing 0.0075% Per Annum
NPS Trust Trust Management Fee 0.01% Per Annum

*Minimum Rs.20 and Maximum Rs.25,000 per contribution

Disclaimer

NPS is launched & regulated by PFRDA- A GOI regulatory body . NPS is not a product/offering/recommendation / advise / solicitation by Indusind Bank. Indusind Bank acts only as a Point of Presence registered with PFRDA  to facilitate processing of NPS related services. NPS corpus may be invested in market related instruments as per guidelines of PFRDA . These instruments may carry market related and other risks and Indusind Bank shall not be responsible for any losses/changes in fund value or NAV of the amount invested. Indusind Bank doesn’t guarantee any returns. Indusind bank makes available NPS related services and doesn’t recommend choice of any scheme, allocation or fund manager, this being solely at customer discretion. Contribution payments are subject to PoP Service charges & applicable taxes, thus actual amount invested will be net of charges & taxes. Kindly refer pfrda.org.in  to understand risks and other factors before investing. Past Performance May or May Not Be Sustained In The Future.

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